Picture: AlamyThe Bank of England has launched an emergency UK Government bond-buying programme to prevent borrowing costs from spiralling out of control and stave off a "material risk to UK financial stability".
While the pound hit an all-time record low of 1.03 against the US dollar on Monday, the yield on 10-year gilts - which is a proxy for the effective interest rate on public borrowing - has soared by the most in a five-year period since 1976, according to experts. "This would lead to an unwarranted tightening of financing conditions and a reduction of the flow of credit to the real economy.
Source: Financial Digest (financialdigest.net)
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